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(Kitco News) – Gold and silver prices are significantly higher in early US trading on Friday, propelled by a US employment report that landed at the low point of market expectations for the report. Silver prices peaked in three weeks. Strong gains in crude oil prices and a weaker US dollar index are also bullish external forces for metals on this day. Short hedging by futures traders is present in both precious metals markets to end the trading week. December gold was up $ 28.40 to $ 1,659.60 and December silver was up $ 0.785 to $ 20.22.
The US Department of Labor monthly employment report just released for October showed that the number of key non-farm payrolls increased by 261,000, which was above the expected increase of 205,000 and compares with the gain of 263,000. seen in the September report. Gold prices added to their solid overnight gains after the report was released, as the analysis says this is a Goldilocks report that is “neither too hot nor too cold,” which means it is not. too strong to push the Federal Reserve to become more aggressive in tightening its monetary policy, nor too weak to raise more concerns about a US economic downturn.
Global equity markets were mostly bullish overnight. US equity indices are headed for higher openings as the New York day session begins, thanks to corrective rebounds in selling pressure seen in the past three sessions and numbers from US employment reports landing at “sweet spot” “of market expectations.
In the overnight news, the euro zone’s September producer price index rose 41.9% year-over-year, which was close to expectations. The surge in energy costs in Europe is driving the PPI into a sharp rise.
The bulls in the silver market have recently outperformed the bulls in gold. One reason could be the increased demand for India. Broker SP Angel said today in an email: “India’s insatiable appetite for silver devours global inventories. Analysts predict Indian silver consumption has increased by more than 80% this year. The purchase of Indian silver was hit hard in the covid two years, but in 2022 purchases saw a sharp rise in demand. Traders are reporting inventory levels in London and Hong Kong warehouses as pent-up demand feeds the market “.
Major external markets today are seeing the US dollar index drop following a corrective pullback from Thursday’s strong gains. Prices of Nymex crude are significantly higher and are trading around $ 91.50 a barrel. The 10-year US Treasury bond is losing around 4.2%.
Other US economic data scheduled for release on Friday includes the Global Services Purchasing Managers Index.
Technically, the gold futures bears have the solid overall technical advantage in the short term. The bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,700.00. Bears’ next short-term bearish price target is pushing futures prices below solid technical support at $ 1,600.00. The first resistance was seen at this week’s high of $ 1,673.10 and then at $ 1,679.40. First support was seen at $ 1,650.00 and then the overnight low of $ 1,631.10. Wyckoff’s market valuation: 2.0
The silver bulls regained their overall short-term technical advantage. There is an unstable uptrend on the daily bar chart. The next upside target for the silver bulls is to close prices above the solid technical resistance at the October high of $ 21.31. The next bearish price target for the bears is to close the price below the solid support at $ 18.00. The first resistance was seen at $ 20.50 and then at $ 21.00. The next support is at $ 20.00 and then the overnight low of $ 19,425. Wyckoff’s market valuation: 6.0.
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